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article imageEPA to BP: No new contracts with the federal government

By Can Tran     Nov 29, 2012 in Environment
Asides from having to pay out $4.5 billion, BP has something else to deal with: a ban from the EPA from pursuing new contracts with the federal government.
For the company British Petroleum known as BP, it's a moment when playing the game “Monopoly.” There's this Monopoly saying: “Do not pass Go, do not collect $500.” BP is currently going through a “Do not pass Go” moment. This all stems from what happened back in 2010 with the explosion at the oil rig known as the Deepwater Horizon. As a result of the explosion, there was an oil spill that affected the Gulf Coast of the United States. After two years, two things have happened in terms of legalities. Robert Kaluza and Donald Vidrine, two veteran employees that used to work for BP, are facing criminal charges in court. They are charged with multiple felony counts of manslaughter in relations to the 11 deaths that have taken place on the Deepwater Horizon.
Shaun Clarke, the attorney for Kaluza, says that both men have been singled out as scapegoats of the whole incident. In their defense, Clarke said that both men did their jobs correctly with regards to their training. That wasn't the only thing Clarke said in defense of the two men. He explained that every investigative report said that multiple failures took place at different levels and with companies other than just BP. He questioned why both Kaluza and Vidrine were singled out at the end.
Bob Habans, the attorney for Vidrine, talked about the lack of logic in blaming those two for what happened.
The defendants have pleaded innocent in regards to the charges.
However, those two aren't the only ones charged. A third person, former BP executive David Rainey, was charged for not revealing information to Congress about how much oil ended up in the Gulf Coast.
Currently, there is still court approval needed on the $4.5 billion in fines that BP has to pay up. However, that's not the end of it. BP is going through even more hurt at the moment. The Environmental Protection Agency (EPA) has slapped a ban on BP for what happened back in 2010. As punishment directed at BP, the EPA has barred the company and its affiliates from bidding for new contracts with the US government. However, BP still gets to keep its current contracts; but, they are currently prohibited from bidding for new future contracts.
This ban will be in place until BP can “prove” that it meets the business standards set by the government.
On a more political level, this ban handed to BP will have an affect on many things. That means the United States military will end up getting fuel from a different supplier. For 2011, according to the Huffington Post, BP has an estimated worth of $1.35 billion in contracts in supplying fuel to the United States military. Plus, it said that the company has close connections with the military.
This could potentially bring up the military as a possible topic for the 2014 elections. In 2014, there are US Senate and US House races that will take place.
Also, from what CNN reports, this could be added to the major issues of the country's economy and fuel costs. It said that in the last five years, BP has invested $52 billion. Almost a quarter of a million jobs are supported by the company.
Keep in mind that it's far from over. You have the criminal cases going on. In February, there's the civil case.
Whatever happens now and in the future, could play a role in future elections, let alone with the Gulf Coast states.
More about BP, bp oil spill, BP OIl Spill Mississippi, bp oil disaster, British petroleum
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